This is just another example of how when the government intervenes into something the problem just gets a lot worse.
For the 18th consecutive year, student loan debt in the United States has risen, says a new report from the Federal Reserve Bank of New York. According to the study, student loan debt reached a total of $1.31 trillion, and no other type of debt has risen as much as this.
Ostensibly, the number of outstanding loans for post-secondary education has gone up since 2008. The only other kind of debt to increase this much are automobile loans.
“Debt held by Americans is approaching its previous peak, yet its composition today is vastly different as the growth in balances has been driven by non-housing debt,” said Wilbert van der Klaauw, senior vice president at the New York Fed. “Since reaching a trough in mid-2013, the rebound in household debt has been led by student debt and auto debt, with only sluggish growth in mortgage debt.”
Here is the chart:
The Fed Bank in Washington says that student loan debt is actually $1.42 trillion.
Researchers noted that the only good news to come out of the report is the fact that total student debt went up just 6.3 percent compared to the previous year. This is the tiniest annual jump since 2003.